Focusing on industrial average return is good for wealth creation. Most of the time, when trying to double the money by each results in havoc. The wealth creation turns into a rollercoaster of ups and downs and finally yielding to a huge loss. We tend to put money based on the momentum and by the time we put this, it will be over and might turn to the distribution stage. Since the long term vision is now way nearer, then it will be hard to sustain at worst stages.
Expecting return a way more than the index average can be of greed influence. Index do gives a handsome return that sometimes even surpasses majority of the stock performance. But it is also true that index may stands still for some years. Yet in the very long it is way better than FDs.
Comments
Post a Comment